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This Week In Crypto: Prominent Cryptocurrencies Slide
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This Week In Crypto: Prominent Cryptocurrencies Slide

The tug-of-war continues as crypto prices jump between gains and losses, generating a “fearful” market sentiment. Still, a few altcoins broke the trend as they moved up the ranks against all odds.

Bitcoin Rebounds Only to Dip Further

The first week of December witnessed double-digit drops across major cryptocurrencies as market sentiment turned sharply negative. Bitcoin (BTC), the leading cryptocurrency by market capitalization, faces the uphill task of rebounding above $50,000 resistance after sliding by almost 13% over the last seven sessions. 

Still, the bloodbath has cranked up the overall trading volume of BTC. Trading volume spiked to $15 billion on December 4, when the crypto market began crashing. 

BTC slumped dramatically after margin account liquidations cascaded, resulting in a sudden jump in the volume metric. Bitcoin futures’ open interest was around $22 billion shortly before the crash. Within hours of the decline, open interest dropped by approximately 24.5%, amounting to roughly $5.4 billion.

Nevertheless, despite the “extreme fear” that has clouded the crypto market, the global hash rate of Bitcoin has returned to its previous all-time high levels, jumping from 84 EH/s in June to around 175 EH/s this week – marking an increase of 108% and likely beckoning a mining difficulty adjustment. 

Tezos Breaks Its Downward Spiral 

After stagnating the last few months, December favors Tezos (XTZ) after the coin finally broke the prevailing downtrend. XTZ swiftly rallied by almost 60% as the news of Ubisoft’s new NFT platform being built upon Tezos started making the media rounds. From its low of $3.23 on December 3, XTZ bounced sharply, reaching a near-term high of near $6.18 before pulling back to the $5.20 level. 

Ever since concerns regarding blockchain’s impact on the environment surfaced, Tezos has gained mainstream attention due to its focus on building an environmentally-friendly blockchain network and protocol from its revenue. Now, the news of its partnership with gaming giant Ubisoft has further helped accelerate its rally higher. 

Terra Enters the Ranks of “Top Ten Cryptos by Market Cap”

While the turbulent market continues to take its toll on almost all cryptocurrencies, Terra (LUNA) has rallied about 13% in the last seven days, setting a new all-time high of $78.30 on December 5. Following this week’s rally, LUNA has pushed above DOGE, AVAX, and SHIB as it inches closer to reaching $28 billion in market capitalization.

The LUNA stablecoin stands out in the stablecoin market because it uses an algorithm that automatically adjusts its supply in proportion to its demand. The platform has already partnered with multiple payment platforms, primarily across Asia-Pacific, to combine the borderless benefits of digital assets with the stability of fiat currencies.

Another altcoin, BitTorrent (BTT), which experienced sluggish price momentum last month, has benefited from a recent sharp rally before coming down over 10% today. The recent surge is attributed to the announcement of the upcoming BitTorrent Chain Mainnet launch, which helped prices finally top firm resistance.

December Commences With Double-Digit Dips 

The ongoing crypto dump has impacted the vast majority of the digital asset landscape. Prices of almost every major cryptocurrency turned red, with BTC briefly dropping nearly $10,000 amid intense liquidations. 

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, faces significant congestion at the $4,300 level. Over the last week, ETH prices have dipped by almost 6%, with an intraday low of $3,913 on December 6, highlighting a potentially bearish continuation setup.

Other leading coins have also lost significant valuation this week, including BNB, which is down over 5%, as well as SOL, ADA, and DOT, which fell over 20% each. As a result of this crash, the Crypto Fear & Greed Index has also dropped to 29 (Fear) compared to November’s 84 (Extreme Greed), underscoring the recent spate of dramatic price dips.

Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates  Read full disclaimer >

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